Why large cap not good for long term.

USUALLY LARGE CAP IS THOUGHT AS A SAFE BET BY INVESTORS AS LONG TERM.
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BUT UNFORTUNATELY THEY NEVER THINK THOSE LARGE CAP WERE GOOD BET FOR LONG TERM NOT NOW BUT 10 YEARS BEFORE.
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WHY
BECAUSE THEIR EARNING IS CONSTANT NOW.
THE SECTOR THEY BELONG TO HAVE MUCH SMALL COMPETITOR WHICH AFFECT THEIR EARNING.
THESE LARGE CAP HAVE ALREADY BEEN GROWN.
YOU MAY HAVE SEEN BIG INVESTORS LIKE PORINJU, DOLLY KHANNA, RAKESH JHUNJHUNWALA ALWAYS INVEST IN MID CAP AND SMALL CAP.
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AND THESE SMALL COMPETITOR ARE GOOD BET FOR LONG TERM BECAUSE THEY HAVE TO GROW.
LARGE CAP ARE AT THEIR SATURATION POINTS.
YOU CANT EXPECT SUN PHARMA TO BE MULTIBAGGER.
YOU CANT EXPECT SBI TO BE MULTIBAGGER.
YOU CAN CHECK THEIR LAST 5 YEARS PRICE HISTORY WHICH IS ALMOST SAME.
SO WHY YOU EXPECT THESE WOULD GIVE GOOD RETURNS IN NEXT 5 YEARS.
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SO FORGET TV STOCKS
LIKE
SBI,
INFOSYS
TATA MOTORS
TECH MAHINDRA
WIPRO
TATA STEEL
RELIANCE GROUP
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AND AT LAST ONE WORD REMEMBER
GREAT COMPANY DOES MOT MEAN GREAT RETURN.

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Author: Atul Singh Stock Market Analyst

Disclaimer: This Blog, its owner, creator / contributor is not a research analyst and expressing opinion only as an individual investor in Indian equities. He/She is not responsible for any loss arising out of any information, post or opinion appearing on this blog. Investors are advised to consult financial consultant before acting on any such information. All information in this blog is posted for personal study, All information posted on blog is as available in public domain.
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